There is an insurance/tech start-up called Trov. Their mobile platform allows you to add your possessions to your inventory. (For example, by importing billing info directly from your e-mail) Then, you can turn on and off insurance coverage on items in your inventory by a simple swipe on your mobile phone. You only pay for number of days of coverage. For example, you can insure your camera for a week when you are going on vacation. They call it on-demand insurance.
Insurance fraud detection is an important part of insurance process such that insurance companies allocate a lot of resources to detect improper insurance claims. Insurance companies also generally do not allow taking insurance for high-risk assets. For example, it is not allowed to buy flood insurance at peak flood season and then cancel it when it is over.
My question is, how does Trov, or other start-ups, prevent people from turning on insurance just before very high risk periods? How do they return profit from something that conventional insurance companies purposefully avoid?